BSE to introduce trading in delivery-based stock F&O contracts

Mumbai, Jan 31 (PTI) The Bombay Stock Exchange (BSE)today said that it would provide trading facility indelivery-based stock futures and options contracts in itsEquity Derivatives segment.

BSE said that with effect from February 1, 2011,trading on all existing single stock futures and optionscontracts expiring on or after April 13, 2011 will bedelivery-based, BSE said in a statement here.

All single stock futures and options contractsexpiring on February 10, and March 17, 2011 will continue tobe cash-settled. There will be no change in other contractspecifications like contract size, strike intervals, number ofstrikes for options, expiry day, and calculation of settlementprice. Final settlement will be on expiry + 3 business days.

a press release said.

BSE said that in single stock futures contracts, allopen positions at expiry will result in delivery obligations.

In single stock options contracts, exercise of allopen positions will be solely at the discretion of the buyeron the expiry day. In other words, there will be no automaticexercise of these contracts on expiry day. The exerciseprocedure will be triggered on receipt of exercise notice fromthe trading member (TM) of the client during the time windowprovided on the expiry day, BSE said.